Gold's drop keeps anxiety high ahead of U.S. Fed meeting

Gold’s plunge to the lowest in more than two years has left it vulnerable ahead of a Federal Reserve meeting that will be pivotal for the metal.

Bullion had hovered above US$1,700 an ounce for most of September but plummeted on Thursday after breaking through a technical support that’s held since 2020. US data pointed to robust retail sales and a strong labor market, raising expectations of more aggressive action by the Fed as it tries to cool inflation.

“We are below the crucial support area,” said Georgette Boele, an analyst at ABN Amro Bank NV. “If it breaks then the next level is US$1600 an ounce.”